Loss widens for flydubai in first half

Low-cost carrier flydubai widened its first half loss to Dh316.8 million compared with the same period last year, as rising oil prices increased fuel costs for the airline.

Flydubai reported a price impact of Dh175m in the first half due to a 35 per cent increase in the average Brent crude oil price compared to a year earlier, it said yesterday.

The airline’s loss widened from the Dh142.5m reported for the six months of 2017. Total revenue for the period increased 10.4 per cent to Dh2.8 billion from a year earlier, flydubai said.

“We have continued to see a tough trading environment and the half-year results reflect these short-term challenges,” said Ghaith Al Ghaith, flydubai chief executive.

“We continue, however, to invest in our fleet, network and operations.”

Flydubai’s revenue per passenger kilometre grew by 6.5 per cent compared to the same period last year, and passenger numbers remained steady at 5.4 million.

The carrier contributed 12.3 per cent of all traffic in Dubai during the period.

“Although higher oil prices will continue to affect our operating costs and performance in the second half, pricing stability at the current level is likely to stimulate demand for regional travel,” Mr Al Ghaith added.

During the first half, flydubai’s total fleet size remained steady at 61 aircraft, but the carrier said in the second half it will take delivery of seven new Boeing 737 aircraft, including four Boeing 737 Max 8.

As part of a network review in recent months, flydubai launched or restarted 10 routes in the first half of 2018 and announced five new destinations, while cancelling services to 10 other destinations and suspending a further two, it said.